In mid-December, Asian markets showed divergence, with Hong Kong stocks leading the decline across the region. The Hang Seng Index closed at 25,139 points at midday, down 1.9%, hitting the lowest level since early September. Among 89 constituent stocks, only 5 closed in the green—this is not just a numerical decline but also reflects a clear shift in market risk sentiment.
Tech stocks plummeted, revealing market concerns about China's growth prospects.
The Hang Seng Tech Index fell by 2.4%, with leading stocks such as Alibaba, Tencent, and Semiconductor Manufacturing International Corporation (SMIC) all retreating. Alibaba dropped 3.6% to HK$143.3, SMIC fell 3.6% to HK$62.35, and China Hongqiao saw a sharper decline of 5.8% to HK$30.08. Behind this wave of tech stock declines lies a core issue pointing to the weakening of China's economic fundamentals.
After the release of November economic data, market concerns intensified. Retail sales increased by only 1.3% year-on-year, well below the expected 2.9%, and also hitting a post-pandemic low; fixed